The government has abandoned plans to impose a single 18% tax rate on all capital gains – a move that will please many dental practitioners.
The change was outlined in October’s pre-Budget report and the tax hike would have badly hit small businesses – hampering dentists selling practices on retirement and the incorporation of dental practices.
Instead, Chancellor of the Exchequer Alistair Darling has announced that there will be a 10% rate on gains of up to £1 million pounds.
The British Dental Association (BDA) has welcomed the news.
The BDA and British Medical Association wrote a joint letter to the Chancellor expressing concern about the impact of the original proposals on general medical and dental practitioners.
In it, they outlined their fears, saying: ‘In worst case scenarios, it could restrict patients’ ability to access these services, particularly if practice premises owners decided to bring forward retirements to before April 2008.’
Susie Sanderson, Chair of the BDA’s Executive Board, said: ‘We told the Chancellor that the pre-Budget report proposals would have both disadvantaged general dental practitioners who have invested in their practices over many years and threatened to act as a disincentive to a new generation of potential practice owners.
‘The announcement represents a welcome change of heart and recognises the significant levels of investment in facilities made by dentists in providing dental services.’